Personalized grooming companies are on the rise
Nearly three-quarters of Ys think it’s important for brands to give good guidance, tips, and advice, and beauty startups are using A.I. to fulfill this request by creating a more personalized experience. Others in the space are furthering the customization trend as young consumers continue to seek out products that reflect their diverse needs.
Beauty subscription service Ipsy, which raised nearly $100 million two year ago, creates boxes based on a survey that determines which products fit members the best. Every month, the company produces more than 10,000 variations of its Glam Bags based on the recommendations it generates from the hundreds of data points from its users. Each costs $10 and contains five products that range from skincare and haircare to fragrances and makeup. Now that the company has more than three million subscribers, it’s expanding into the world of e-commerce with Shopper, which allows users to buy products directly from the website instead of waiting for their monthly box.
FUNCTION OF BEAUTY
Created by two MIT alumni dissatisfied by current beauty product formulations and extreme markups, Function of Beauty is a haircare company that personalizes shampoo and conditioner for each customer with the help of a quiz. This simple quiz asks questions about the customer’s haircare needs and then uses an algorithm to determine which personalized formula will suit the client best. Many aspects of the product can be customized including color, bottle size, fragrance, and smell strength. The company attracted $1.5 million in its seed round at Y Combinator in 2016 and increased revenue 50% each month for the first six months after launching.
With just five scans from an iPhone onto skin (wrists, cheeks, and forehead), MatchCo promises to provide a perfect foundation shade that’s shipped in one to two business days. The company has developed an app that gives access to the skin tone scanning technology. Each bottle is personalized with the customer’s name and the date it was made to ensure the personalization and freshness of the product. The brand promises a 100% shade match guarantee and offers a rematch or return if the customer isn’t satisfied with the result.